I agree with Shelly, here in Australia, many small businesses fail, within the first year or so...nothing to do with the economy...just wrong location, poor or overpriced stock and non-existent skills. We have only one remaining LQS, I go there quite often, even if it's just to buy needles, thread or bits and pieces. Oftentimes smaller stores just can't offer the discounts...so if you're on a tight budget you have to shop at the larger outlets.
What keeps people going back to the little guys....genuine, knowledgeable and helpful staff.